USDA house loans?

nitrouz

I've been searching the internet and found out you can get a Rural Housing Direct Loan from the Govt. that will finance 100%.

Anyone ever use it?

http://www.rurdev.usda.gov/rhs/sfh/brief_rhdirect.htm



"He that hath no sword, let him sell his garment and buy one."
- Jesus Christ in Luke 22:36

nunn

I had two mortgages through the FmHa, Farmers Home Administration, a division of the USDA, when I lived in Arkansas. The buyer and the home both had to qualify. I made little enough money at that time that I even qualified for a partial interest subsidy. The house couldn't be over 1,200 square feet and had to meet certain other criteria.

SIG pistol armorer/FFL Dealer/Full time Peace Officer, Moderator of General Discussion Board on Gunbroker. Visit www.gunbroker.com, the best gun auction site on the Net! Email davidnunn@texoma.net

nunn

I had two mortgages through the FmHa, Farmers Home Administration, a division of the USDA, when I lived in Arkansas. The buyer and the home both had to qualify. I made little enough money at that time that I even qualified for a partial interest subsidy. The house couldn't be over 1,200 square feet and had to meet certain other criteria.

SIG pistol armorer/FFL Dealer/Full time Peace Officer, Moderator of General Discussion Board on Gunbroker. Visit www.gunbroker.com, the best gun auction site on the Net! Email davidnunn@texoma.net

nitrouz

Nunn, how did you go about getting the mortgage?


Thanks!



"He that hath no sword, let him sell his garment and buy one."
- Jesus Christ in Luke 22:36

pack rat633

I got one in 1975, The house had to be in the country or unincorparated township. Bank in the next town handled it. (we didn't have a bank in this town).

SEMPER FI MAC, SEMPER FI

BoltactionMan

You will find, unfortunately, that the funding for the direct loans is very limited. Nunn is right, the qualifications are relatively tough. What you need to ask about is the USDA Rural Development Home Loan guarantee.

This program has way more funding, you can buy a house with no money down, but it will take about 5% on average to cover the closing costs. These can be paid by the seller if the house appraises for enough. There is an inspection for the home to pass, but it is nothing major. There are also income limits based upon household size.

Call you local USDA office, they can direct you to an area lender that participates. With the present mortgage climate they aren't as popular as they were a few years ago, but it is a nice way to get into a house. Often they can be combined with an state 1st time homeuyer programs too.

In the mid 90's, we used to do a lot of these mortgages for people. It is a good program.

KC

BoltactionMan

You will find, unfortunately, that the funding for the direct loans is very limited. Nunn is right, the qualifications are relatively tough. What you need to ask about is the USDA Rural Development Home Loan guarantee.

This program has way more funding, you can buy a house with no money down, but it will take about 5% on average to cover the closing costs. These can be paid by the seller if the house appraises for enough. There is an inspection for the home to pass, but it is nothing major. There are also income limits based upon household size.

Call you local USDA office, they can direct you to an area lender that participates. With the present mortgage climate they aren't as popular as they were a few years ago, but it is a nice way to get into a house. Often they can be combined with an state 1st time homeuyer programs too.

In the mid 90's, we used to do a lot of these mortgages for people. It is a good program.

KC